On March 25, 2020, the Senate passed an amendment to H.R. 748,
the Coronavirus Aid, Relief, and Economic Security Act (as amended,
the "CARES Act"), which (as of March 26, 2020) is
being considered in the House.
The complete text of the current draft of the CARES Act can be
found here.
Section 4013 of the CARES Act provides that a financial
institution may elect to (i) suspend requirements under U.S.
Generally Accepted Accounting Principles for any loan modifications
related to the Coronavirus Disease 2019
("COVID-19") pandemic that would otherwise be
categorized as a troubled debt restructuring, and (ii) suspend any
determination of loans modified as a result of COVID-19 as being
troubled debt restructurings. Federal banking agencies and the
National Credit Union Administration must defer to a financial
institution to make a suspension. Such elections may begin on March
1, 2020 and last no later than the earlier of (i) 60 days after the
lifting of the COVID-19
